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(Updated actions in paragraph 1, added chart)
Super Micro Computer shares
SMCI.O fell more than 24% to its lowest level in almost 18 months on Wednesday, as a lack of clarity on the timing of its annual report and weak quarterly forecasts fueled investor concerns about the server maker of artificial intelligence.
The company's auditor, Ernst & Young, unexpectedly withdrew last week after highlighting some concerns about financial reporting. Super Micro said Tuesday that an investigation by a special committee of its board found no evidence of fraud or misconduct.
“The actions of the previous auditor and the special committee are at odds with each other, which only increases confusion around current developments rather than helping with greater transparency,” they said. JPMorgan analysts in a note.
In late August, Super Micro also delayed filing its annual report, citing the need to evaluate “its internal controls over financial reporting.”
This came a day after short seller Hindenburg Research said it had taken a short position in the stock, alleging “accounting manipulation” at the company.
Super Micro risks being delisted from Nasdaq if it fails to meet deadlines later this month.
If current losses continue, the company is expected to lose more than $4 billion in market value.
On Tuesday, the company also forecast second-quarter revenue and profit below Wall Street expectations as it awaits delivery of Nvidia's latest chips NVDA.O .
Super Micro shares have been choppy since peaking in March thanks to the rise of generative artificial intelligence technology, which has driven demand for AI-powered servers and hardware used to process large amounts of data.
The stock is down about 2% this year, after rising more than 240% last year.
Super Micro is trading at a forward price-to-earnings ratio of 7.56, compared to 14.70 for Dell Technologies DELL.N and 9.51 for Hewlett Packard Enterprise HPE.N .
